Running a limited company means the business is a separate legal entity from you. That gives you limited liability and can be more tax-efficient, but it also makes you a director with legal responsibilities, and it brings two sets of filings: statutory accounts and a confirmation statement for Companies House, and a Corporation Tax return for HMRC. We look after the lot, so you can get on with running the business.
What are a director's responsibilities?
As a director you are legally accountable for the company's compliance, whether or not you touch the paperwork yourself. The duties come from the Companies Act and are backed by automatic penalties for late filing, so they are not optional and they do not wait for a quiet week.
These are the core obligations we take care of for the companies we look after:
- Annual statutory accounts, prepared to the required standard and filed with Companies House after each financial year.
- The Corporation Tax return, a CT600 filed with HMRC and the tax paid, usually nine months and one day after your year end.
- A confirmation statement, filed at least once a year to keep the company's public record accurate.
- Proper company records, statutory registers, plus accounting records that support every filing you make.
- Your own Self Assessment, a personal return reporting the salary and dividends you take out of the company.
How much Corporation Tax will my company pay?
Companies pay Corporation Tax on their profits. The small profits rate is 19% where profits are no more than £50,000, and the main rate is 25% where they go above £250,000. Between those two figures, marginal relief applies and produces an effective rate of around 26.5% on the profits in that band. These rates and thresholds can change at Budgets, so we always confirm the current position for your accounting period against GOV.UK.
The headline rate is only part of the story. What you actually pay comes down to claiming your reliefs and allowances correctly, capital allowances on equipment, allowable expenses, and any reliefs that apply to your sector. Our Corporation Tax service makes sure none of that is left on the table.
Should I pay myself in salary or dividends?
One of the genuine benefits of trading through a company is that you choose how you pay yourself. Most owner-directors take a modest salary through payroll and draw the rest as dividends from company profits. The two are taxed differently: salary is a deductible expense for the company and attracts National Insurance, while dividends are paid from post-tax profit and have their own rates and a dividend allowance, currently £500.
Dividends can only come out of genuine distributable profits, and they need proper paperwork to go with them. Taking too much, or drawing it as an undocumented loan, can land you with an unexpected tax charge, which is exactly the kind of thing we help directors steer clear of.
How we support company directors
Statutory accounts
We prepare and file your company accounts accurately and on time, year after year.
Learn moreCorporation Tax
We work out your tax, claim every relief going and file your CT600 with HMRC.
Learn moreDirector payroll
We run your salary through RTI payroll and keep your dividend paperwork in good order.
Profit extraction advice
We find the salary and dividend mix that fits your profit and your personal position.
What is a director's loan, and why does it matter?
The place companies most often come unstuck is treating the company's money as the director's own. The company bank account is not your personal account, and money you draw beyond salary and dividends usually becomes a director's loan, which carries its own reporting and a potential tax cost. We keep a clear line between company and personal finances, track the director's loan account and flag anything that needs attention before it turns into a problem.
With regular management accounts you also get a live view of profit through the year, so decisions on dividends and tax planning rest on real figures rather than guesswork.
Working with us as a director
Review your company
We look at your accounts, your filing position and how you currently take money out.
Agree a yearly cycle
We set a fixed fee covering your accounts, Corporation Tax, payroll and your own return.
Stay ahead of deadlines
We ask you for information in good time and file everything well before the limits.